WTO, FTA and Autos

.

World Trade Organization, Free Trade Agreements and Autos

The ‘Made in China’ Car is coming. Toyota, Nissan and Suzuki started the manufacture of auto parts in China trend and in order to compete, Ford and GM have followed suit. It didn't take long for the Chinese to copy the technology, most of it handed to them, and build their own competitive vehicles. Basically the only thing holding them back from flooding the North American market is emission standards.

China has 45 auto manufacturing companies, the most in the world.

Here's a list from: China Car Forums
Just a few and their connections:

• ChangAn Suzuki Auto Corp. in 1993, ChangAn Ford Auto Corp. in 2001 and ChangAn Ford Nanjing Corp. in 2004
• GWM, has collaborated closely with the well-known designing companies from Europe and Japan,
• Changhe Machinery Factory, started assembling Suzuki ST 90VT trucks
• Dongfeng Motor Corporation, manufacture of passenger vehicles with Nissan Motor Co., Ltd, Honda Motor Co., Ltd and Kia Motors Corporation and Citroen.
• China FAW Group Corporation, working in partnership with Volkswagen, Toyota
• Fudi Auto, invested in a designing expert from Detroit,
• Geely International Corporation, extensive trading relationship with over 50 countries in regions covering USA, North and West Europe, Russia and South East Asia.
• Zhejiang Gonow Automobile Co., introducing advanced German and Japanese technology and equipment in aspects of engine, transmission, body, chassis, exterior design.
• Brilliance China, established a joint venture with BMW to produce BMW 3-series and 5-series sedans

In April of 2006, the US concluded FTA negotiations with South Korea. The South Koreans also agreed to eliminate an eight per cent tariff on American- made vehicles and overhaul its system for taxing vehicles based on their engine sizes. The U.S. will drop its 2.5 per cent duty on small- engine South Korean vehicles, and over 10 years will phase out a 25 per cent duty on imported trucks. Canadian Auto Workers union president Buzz Hargrove described the agreement as “poor” and said he was worried the Canadian government will follow the U.S. lead on negotiating new auto rules.

There is every concern that the US, and Canada, will negotiate the same agreement with China. Under the WTO rules they will be forced to do so. Ford and GM and probably Chrysler will move their entire manufacturing to China in order to compete which means the loss of 40 to 50 thousand jobs in Ontario alone. Due to shipping costs, new, fully automated assembly plants will be built on the west coast meaning a disruption in the lives of the few remaining auto workers.

Can we really trust Chinese manufacturing to build our vehicles?

They can't even get the paint right on kids toys. Thousands of parts sub- contracted and re- sub- contracted to thousands of factories spread out over southern China, there is no way of guaranteeing any quality control what- so- ever.

California auto parts seller Harbor Freight Tools will recall as many as 295,000 sets of automobile fuses manufactured in China because they could malfunction and cause electrical fires.

Chevrolet Equinox, a compact sport utility vehicle built in North America, the engines under their hoods – they are made in China.

In German crash test, China's Brilliance BS6 sedan fails miserably
by Alex Nunez

China's Brilliance BS6 is a recent entry into the European market, positioned as a premium-style import sedan at a budget price. Well, after seeing the videos of the car undergoing crash testing using Euro NCAP guidelines at the ADAC (Germany's AAA, essentially) test center, one thing's certain: buyers get what they pay for. The BS6, as currently constructed, appears to a complete piece of crap. The horrifying 40 mph offset frontal crash test video shows damage that can be described as catastrophic at best.

.